A DETAILED STUDY ON RETAIL MANAGEMRNT

1. A TALE OF RETAIL
A REPORT ON A DETAILED STUDY ON RETAIL MANAGEMENT
SUBMITTED BY:
SANJIVANI [PGDM 1910]

2. 1A TALE OF RETAIL
1 CONTENTS
2 Understanding Retail - What is Retail?..........................................................................2
3 Types of Retail Outlets.................................................................................................3
4 Retail Mechanism- How does retail work?....................................................................4
5 Retail Pricing- Different Types of Pricing Models...........................................................5
6 Retail Merchandising...................................................................................................6
7 Retail Management.....................................................................................................7
8 Retail Marketing..........................................................................................................7
9 Role of Advertising in Retail..........................................................................................8
10 Visual Merchandising...................................................................................................8
11 Retail Store Operations................................................................................................9
12 Inventory and Stock Management................................................................................9
13 Factors Affecting Buying Decision of the Customers at the Store ..................................10
14 Buying Behaviour Patterns of Customers.....................................................................11
15 Inventory Management in Retail Industry - Need and Important Terminologies............13
What is Inventory Management?...................................................................................13
16 Evolution of Retail: Indian Context..............................................................................14
17 Social and Economic Significance of Retailing..............................................................16
18 Challenges to the Retail Sector...................................................................................17
19 Self-Checkout Apps: The Future of Retail.....................................................................18
20 WHY SUPER99........................................................................................................20
21 STUDIED AND NOTED OUT PAPRAMETERS AT SUPER99 .....Error! Bookmark not defined.
21.1 RETAIL MARKETING MIX...............................................Error! Bookmark not defined.
21.2 MAKETING MIX OF SUPER99.........................................Error! Bookmark not defined.
21.3 INVENTORY AND SUPPLY CHAIN MANAGEMENT AT SUPER 99......Error! Bookmark not
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21.4 TARGET CUSTOMERS AT STORE99 ................................Error! Bookmark not defined.
21.5 CUSTOMER RETENTION STRATEGIES.............................Error! Bookmark not defined.
21.6 CUSTOMER RELATION CHALLENGES..............................Error! Bookmark not defined.
21.7 UNIQUE SELLING POIN OF SUPER99..............................Error! Bookmark not defined.
22 QUESTIONAIRE ASKED DURING INTERVIEWING THE STORE MANAGER: Mr. kishan...Error!
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CONTACT INFORMATION...................................................Error! Bookmark not defined.

3. 2A TALE OF RETAIL
2 UNDERSTANDINGRETAIL- WHATIS RETAIL?
Retail involves the sale of goods from a single point (malls,
markets,departmentstores etc.) directly to the consumer in
small quantities for his end use.
Retailing is nothing but transaction of goods betweenthe seller and
the end user as a single unit (piece)or in small quantities to satisfy
the needs of the individual and for his directconsumption.
The Supply chain:
Manufacturers (Wholesalers)... Retailers... End User
(Consumer)

4. 3A TALE OF RETAIL
3TYPES OF RETAILOUTLETS
Retailing refers to a processwhere the retailer sells the goods
directly to the end-user for his own consumptionin small quantities.
 Department Stores
A departmentstore is a set-up which offers wide range of products to
the end-users under one roof.
Examples – BIG BAZAAR,D-MART
 DiscountStores
Discount stores also offera huge range of products to the end-users
but at a discounted rate.
Examples - Wal-Mart currently operates more than 1300 discount
stores in United States. In India Vishal Mega Mart comes under
discount store.
 Supermarket
A retail store which generally sells food products and household
items, properly placed and arranged in specificdepartments is called
a supermarket.
Examples – Reliance fresh, Food Bazaar.
 Warehouse Stores
A retail format which sells limited stock in bulk at a discounted rate is
called as warehouse store. Warehouse stores do not bother much
about the interiors of the store and the products are not properly
displayed.
 Mom and Pop Store (also called Kirana Store in India)
Mom and Pop stores are the small stores run by individuals in the
nearby locality to cater to daily needs of the consumers staying in the
vicinity.

5. 4A TALE OF RETAIL
 Speciality Stores
As the name suggests,Specialitystore would specialize in a
particular productand would not sell anything else apart from the
specificrange.
 Malls
Many retail stores operating at one place form a mall. A mall would
consistof several retail outlets each selling their own merchandise
but at a commonplatform.
 E Tailers
Now a days the customers have the option of shopping while sitting
at their homes.
Example - EBAY, Rediff,Shopping,Amazon
 Dollar Stores
Dollar stores offerselectedproducts at extremely low rates but here
the prices are fixed. Example - 99 Store would offer all its
merchandiseat Rs 99 only.
4 RETAIL MECHANISM - HOW DOES RETAIL WORK?
Retailing is defined as the process ofselling merchandise to the
consumers for their end use in small quantities. The retailer sells
products to the end-users either in single units or in small quantities
as per their need and capability.
Retailer.................................. Consumer (End - User)
RETAILING

6. 5A TALE OF RETAIL
5 RETAIL PRICING - DIFFERENT TYPESOF PRICING MODELS
According to the conceptof retailing, a retailer doesn’t sell products in
bulk; instead sells the merchandise in small units to the end-users.
Cost Plus Pricing Mechanism
Every organization runs to earn profits and so is the retail industry.
Cost plus pricing works on the following principle:
CostPrice of the product + Profit (Decidedby the retailer) = Final price
of the merchandise.
Competitive Pricing
The price of the merchandise is more or less similar to the
competitor’s but the retailers add on certain attractive benefits
for the customers.(Longerpayment term, gifts etc.)
Pricing Below Competition
The price of the merchandise is kept lesserthan what is being
offeredby the competitors.
Prestige Pricing(Pricing abovecompetition)
The retailer can charge higher price than the competitorsonly under
the following circumstances:
 Exclusive Brands at the store.
 Brand image of the store
 Prime location of the retail store
 Excellent customerservice
 Merchandise not available at any other store
 Latest Trends

7. 6A TALE OF RETAIL
PsychologicalPricing
Certain price of a product at which the consumerwillingly
purchases it is called psychologicalprice. The consumer
perceives such prices to be correct.
Multiple Pricing
 According to multiple pricing, the retailer sells multiple products
(more than one) for a single price.
 The retailers combine few products to be sold for a single fixed
price.
 3 Shirts for$100/- or 3 Perfumes for$20/- and so on.
DiscountPricing
According to discount pricing, the retailer sells his merchandise
at a discounted price during off seasons or to clear out his
stock.
6 RETAIL MERCHANDISING
Retail Merchandising refers to the various activities which contribute
to the sale of products to the consumers fortheir end use. Every retail
store has its own line of merchandise to offerto the customers.The
display of the merchandise plays an important role in attracting the
customers into the store and prompting them to purchase as well.
PromotionalMerchandising
A merchandisermaximizes the sale of the products by:
 Attractive packaging
 Impressive presentationof the Product
 Unique Pricing (Discounts)
 Promotional schemes,gifts
Examples:
Creative Portico Pvt Ltd sources bed sheets, curtains specially
inspired from characters (Disney, Harry Porter, Hannah Montana) - a
hit amongst kids.

8. 7A TALE OF RETAIL
7 RETAIL MANAGEMENT
The various processes which help the customersto procure the
desired merchandise from the retail stores for their end use refer
to Retail management. Retail management includes all the steps
required to bring the customers into the store and fulfill their buying
needs.
8 RETAIL MARKETING
The mechanism of selling products in small quantities from fixed
locations to the customers fortheir end use is called as retailing.
 Signage: Signboards go a long way in creating brand
awareness and promoting a particular brand.
 Advertising: Advertising is a strong medium which influences
the buying decisionof the customerand prompts him to shop.
Various ways ofAdvertising:
 Billboards: Billboard is one of the bestways of out of home
advertising
 Coupons: Coupons are an effective way of promoting a brand
as they offersome kind of financial benefitto the customers in
the form of discounts and rebates and thus attracting them into
the store.
 Private Label: Private label is an effective way to promote
one’s brand at low costs.

9. 8A TALE OF RETAIL
9 ROLEOF ADVERTISING IN RETAIL
Promoting a brand is more important than opening a store. It is
essential to create brand awareness for the customers to know about
the brand’s existence.
The retailer must strive hard to communicate the USPs (Unique
selling Proposition)of the brand to influence the buying behavior of
the customers.
Advertisements play a crucial role in promoting a brand and creating
its awareness amongst the masses.
Advertisements have taglines to create awareness of a productor
service in the most effective way.
It helps to create a positive image of a particular brand in the minds of
the customers and prompts them to buy the same.
10 VISUAL MERCHANDISING
The art of increasing the sale of products by effectivelyand sensibly
displaying them at the retail outlet is called as visual merchandising.
Visual merchandising refers to the aesthetic display of the
merchandise to attract the potential buyers, prompt them to buy and
eventually increase the sales of the store.

10. 9A TALE OF RETAIL
11 RETAIL STOREOPERATIONS
Store Atmosphere
The store must offera positive ambience to the customers for them to
enjoy their shopping and leave with a smile.
Cash Handling
 It is essential for the retailer to track the daily cash flow to
calculate the profit and loss of the store.
 Cash Registers,electronic cash management system or an
elaborate computerized point of sale (POS) system help the
retailer to manage the daily sales and the revenue generated.
Customer Service
 Customers are assets of the retail business and the retailer
can’t afford to lose even a single customer.
 Greet customers with a smile.
 Assistthem in their shopping.
 The sales representatives should help the individuals buy
merchandise as per their need and pocket.
 The retailer must not oversell his products to the customers.Let
them decide on their own.
Refunds and Returns
 Formulate a concrete refund policy for your store.
 The store should have fixed timings for exchange of
merchandise.
12 INVENTORY AND STOCKMANAGEMENT
 The retailer must ensure to manage inventory to avoid being
“out of stock”.
 Every retail chain should have its own warehouse to stock the
merchandise.
 Take adequate steps to prevent loss of inventory and stock

11. 10A TALE OF RETAIL
13 FACTORS AFFECTING BUYING DECISIONOF THE CUSTOMERSAT THE
STORE
There are several factors which affectthe buying decisionof the
customers.Let us go through them one by one:
1. Store Display and Presentationof Products
The store display plays an important role in influencing the
buying decisionof the customers.It is the display of the store
which attracts passing individuals into the store. The store must
have an attractive display to entice the customers.Shopping
may be the last priority for an individual but a creative display
encourages him to spend on shopping.
2. Ambience of the Store
The store ambience plays an important role in attracting new
customers and retaining existing ones.
3. CustomerTreatment
Warm customertreatment is an effective way to pull the
customers into the store. It is essential for the retailers to treat
the customers like kings to expectloyalty from them.
4. Store Design and Layout
A customerwould never prefershopping from a store which
gives a cluttered look. There should be ample space in the
store for the customers to move and shop freely.
5. Other Factors
 Discounts and rebates
 Promotional schemes
 Customers also indulge in shopping to redeem their
coupons and avail discounts.

12. 11A TALE OF RETAIL
14 BUYING BEHAVIOUR PATTERNS OF CUSTOMERS
For understanding the buying behaviour of the customers in retail
stores it is very important to analyze the customerpsychology,the
factors which influence a customerfor buying certain
products/services from the stores and also an analysis of the
customer’s responsetowards a sales promotion is very critical.
A consumeris the ultimate user/beneficiaryof the
product/servicewhereasa customeris the one who purchases
the productor a service.
14.1.1 Analyzing and Identifying the Actual
Customer
 Analysis of the customercomposition: This includes
analysis of the demographic factors like gender, age group,
occupation, religion, economic & social status and nationality.
 Understanding the Origin of the Customers: This involves
an analysis of the place or location from where the customer
reaches the retail store, travel time spent by the customerfor
reaching the retail store and the type of area in which the
customerlives.
 Assessmentof the Customer Objective: An analysis of the
objective of the customeris very crucial whether a customeris
actually in the mood for buying a product or simply is engaged
in a shopping endeavor.
 Place or the Location of Purchase: Lot of customers preferto
purchase their preferred productsby visiting various stores in
differentlocations for comparing the prices and the offers.
 Type of Products to be Purchasedand Quantity of
Purchase: This essentially implies an analysis of the type of
productwhich a customerwill want to purchase and in how
much quantity. This will depend on the following factors like:
i. Buying capacity of the customer
ii. Product Perishability or durability
iii. Availability of the product choices
iv. Customerrequirement of the product

13. 12A TALE OF RETAIL
14.1.2 Frequency of Purchase and the Time
during When a Product is purchased
 The product type
 CustomerLifestyle
 How essentialor necessary the productis
 Festivals, Rituals, and Customs
 The extent of influence of the individual who accompanies the
ultimate buyer of the product.
14.1.3 Purchase Methods
 Whether the customeris buying the productalone or is
accompanied by someone else.
 Whether a customermakes the payment by cash or by way of
debit/creditcards, net banking or on a credit basis.
 An analysis of the mode of conveyance of the customer.
14.1.4 Customers Response towards the Sales
Promotional Techniques
 ProductDisplays: Productdisplay create an aesthetic appeal
and hence influence the buying behaviour of the customer.
 Demonstration: Productdemonstrations help a lot in
motivating the customerfor buying the productby making them
aware of the usage of the products and or by distributing a
productsample.
 SpecialSchemes and Pricing: Various product schemes,
offers,specialprices during festive seasons.

14. 13A TALE OF RETAIL
15 INVENTORY MANAGEMENTIN RETAILINDUSTRY - NEED AND
IMPORTANT TERMINOLOGIES
What is Inventory Management?
Inventory refers to the goods stockedforfuture use. Every retail chain
has its own warehouse to stock the merchandise to be used when the
existing stockreplenishes.
Inventorymanagementrefers to the storageof productsto be
used at the time of crisis
The retailer keeps a track of the stocked goodsand makes sure there
is surplus inventory to avoid being “out of stock”.Such a process is
called as inventory management.
Preventing loss of inventory
Employees working at the store might get tempted to steal the
merchandise.
Let us go through some tips which help to prevent loss of inventory:
 Check the bags of the employeesbefore theyleave the store.
 Raise an alarm whenever you find someone stealing
something. Supporting a wrong deed is also a crime.
 Make sure that all the employeesleave from one commondoor.
 Avoid multiple exits.
 Check garbage before dumping.
 Keep properrecord of the inventory(Stock coming in and going
out)

15. 14A TALE OF RETAIL
16 EVOLUTIONOF RETAIL:INDIAN CONTEXT
With revolutionarychangestaking place in the worldwide
economyand the growing importanceof 24/7 operation of the
business,the retailsector has been undergoing a paradigmshift
acrossthe world.
Several studies have proven that the Indian Retail Market is one of
the top emerging markets in the world. For Indian Economy,the retail
sectoris one of the pillars, which contributestowards a growth
rate of approximately 10% of the total GDP and towards the total
employmentaround 8%.According to the latest studies, Indian
retail marketis rankedamongstthe top 5 retail markets
worldwideestimated around600 Billion US Dollars.
Studies reveal that organized retail market which was just at 7% of
the total retail market share in 2011-12,is expected to attain a total
share of over 10% across the retail sectorby 2016-17.The estimated
growth rate of traditional retail is expected to be around 5% while for
organized retail it is expected to be around 25% by 2020.
Food & Grocery is the major contributor in the entire retail market in
India with a total contribution of almost around 60% of the total retail
sectorin 2012.This is followed by Clothing (8%) and Telecom &
Mobile (6%) and many others. In organized retailing, Apparels is the
major contributor which accounted for a total contribution of 33% in
2012 to the retail industry followed by food and grocery (11%).
Though, the share of Food & Grocery segmentin organized retailing
has shown an impressive growth since last few years. E Commerce
and E Tailing in recent years have redefined the retail landscape and
offera lot of opportunities to various stakeholders.

16. 15A TALE OF RETAIL
Challenges Faced by the Indian Retail Sector
 Competing with the international standards
 Indian retail industry is exposed to several systemic
inefficienciesand problems with the supply chain framework.
 Indian retail outlets operate in a constrained space of below
500 sq. ft., which is too small as per the international retail
outlet space standards.
 Growth in the retail industry has given rise to real estate related
problems with increasing requirements for setting up
hypermarkets and supermarkets across various locations in
large scale.
 Problems related to the shortage or lack of availability of trained
or skilled manpower.
 Frauds in the form of thefts, vendor frauds or administrative
loopholes in the retail industry, are a major cause of worry and
this has posed severalchallenges before the management.
 Infrastructural and logistics related issues.

17. 16A TALE OF RETAIL
17 SOCIAL ANDECONOMIC SIGNIFICANCEOF RETAILING
The retailer acts as a link between the customer and the
marketer,who is responsible for selling the ultimate products
and servicesto the customers.In the entire complicatedprocess
of marketing,retailer acts an intermediary in the complex
marketing& distribution channel.Though manufacturers can
directly sell their products and services to the end customers
ultimately, it may resultin high expenses,inconvenience and
time-consumingprocess.
17.1 SOCIAL SIGNIFICANCE
Regulation and controlfrom various pressure groupssuch as
socialactivists,socialworkers,and consumeractivists compel
the retailers in implementingtheir marketing programmes
restrictively and communicating the true picture aboutthe
benefits or harms of using a product.
17.2 ECONOMIC SIGNIFICANCE
The retailsector has openednewer job avenues for people
having differentareasof specialization with diverse skills and
qualification backgrounds.These opportunities could be in the
areas of Finance & Accounting, Retail Operations,Commercial
Operations, Inventory & Warehousing, SCM & Logistics,HRM,
Distribution Systems,Marketing & Brand Management, IT, New
Products Development& Market Research/BusinessAnalysis.

18. 17A TALE OF RETAIL
18 CHALLENGES TO THE RETAIL SECTOR
Michael Porter’s Five Forces Modelhelps in the determination of the
industry attractiveness and in analyzing the prospectsof growth and
opportunities by assessing the competitive trends and the intensity of
the rivalry amongst the existing competitors.
It provides key insights to the organizations for crafting and
implementing both long-term and short-term strategic plans.
The Five forces are:
Threatfrom the Competitors,
Threatfrom the Substitutes,
Buyer Bargaining Strength,
Supplier Bargaining Power and
Intensity of the Competitive Rivalry.
The industryis faced with cut-throatcompetition and is still
ruled by unorganized players though the organized retailsector
has shown an incredible performance.

19. 18A TALE OF RETAIL
19 SELF-CHECKOUT APPS: THEFUTUREOF RETAIL
The business of retail has always been evolving with technology.
Companies which have been at the helm of technology have
dominated the retail sector.Considerthe case of Wal-Mart which
reached new heights in retail thanks to pioneering the RFID based
inventory system.Similarly, Amazon has been using its technological
advancement to give tough competitionto Wal-Mart.
THE BACKGROUND OF SELF-CHECKOUT APPS
Amazon-Go is the latest and the most refined version of self-
checkouts apps. Amazon has advertised its technological
advancements and has made this boring technologylook
fashionable. At the presentmoment, it seems like Amazon is the
leader in self-checkouttechnology.
With Amazon Go, retail stores can eliminate the need for cashiers.
Some of the advantages of using self-checkouts apps havebeen
listed below.
No More Long Queues:The most obvious advantage of using a self-
checkout app is that customers do not have to wait in queue for
buying the products that they need.
Supersizing:Retail stores are not the only ones that have been
experimenting with self-checkouttechnology. Big players in the
restaurant industry, like McDonald’s, have also been experimenting
with this technology.In many stores,they have started using self-
checkout technologybecause it was found to be increasing sales.
Lower Costs:There are obvious cost advantages that are
associated with self-checkouttechnology. This technology eliminates
the need for human cashiers. As a result, the wage bill of the store
gets reduced.

20. 19A TALE OF RETAIL
PersonalizedOffers:Lastly, when all purchases are routed via an
app, the company has all the purchase data in an electronic format.
This means that they can analyze the purchasing patterns of every
individual and create personalized offersforthem.
To sum it up, self-checkouttechnology is growingby leaps and
bounds.Big companies are transformingthe retailsector by
implementing newer versions of this technology.
RETAIL MARKETING MIX
The Retail Marketing Mix is a marketing term
that refers to the variables that a retailer can combinein alternative ways
to arrive at a marketing strategy for attracting its consumers.
A retail marketing mix addresses product, price, placeand promotion, in
order to keep your smallbusiness growing and thriving.

21. 20A TALE OF RETAIL
20 WHY SUPER99
Super 99 (previously Store 99). Store 99 was originally part of the
Shahid Group which owned THS (The Home Store) & Sabka Bazaar.
Store 99 was founded by Mr. Javed in 2007 as he brought this
conceptfrom the US since he lived there for more than 30 years.
The same passion and vision is now part of Super 99 a leading retail
shopping brand with more than 65+ stores throughout India.
They have a deep expertise since 1997 within the retail segmentand
now they are rapidly and successfully expanding Super 99 across all
of India.
Since 2007, they have been adding value to the lives of their
customers. They source many of their products locally as they believe
in “Make in India.” They also source some of their products from
many countries such as Turkey, Thailand, Vietnam and China.
Each of Their SUPER 99 stores is laced with a wide range of
products that they use in our everyday lives. So, you can expect to
get anything from a wide range of categories such as Kitchen &
Dining, Health & Beauty, Toys & Games, Food & Beverage,
Stationery, Home Accessories,Gifts & Decor,Bathroom, and Ready
to wear and much more.
They look to give customers a unique retail shopping experience by
blending together the bestof online as well as the offline world.
Anyone can visit their website,browse through the available
categories and find the product of your choice.After that, you can find
or locate their store near your area and go to make a persononly
after seeing the productin person.

22. 21A TALE OF RETAIL
WHY SHOPPING AT A SUPER 99 STORE?
 Shopping at a SUPER 99 store is much more than fun.
 You get value for every single paisa spent
 Prices are so incredibly low that you won’t believe at first
 A great range of more than 5,000 products
 Genuine and high quality products made to cater your everyday
needs
 Year-round discounts saving you maximum money
 Products and items as low as Rs. 9
Feel, touch and enjoy shopping at a SUPER99 store!
Choose online, shop offline!
Feel the magic of real shopping!
A heaven for shop-hoppers and discount-hunters!
100% satisfaction with shopping!